Classic Airlines

Classic Airlines and Marketing

November 14, 2010

Marketing: MKT/571

Introduction

Marketing is a key component for all businesses that want to succeed. Businesses that are successful with marketing utilize both unique, informal, and formal marketing tools and plans. In the case study, we are looking at a business, Classic Airlines, and its current marketing strategy and challenges.

Classic Airlines is the fifth largest airline carrier in the world that has been in operation for 25 years. Classic Airlines has a current fleet of 375 airplanes that has service to 240 cities and more than 2,300 flights each day. The previous annual net income for Classic Airlines was approximately $71 million dollars. The current net income of $10 million dollars has the business searching through its current marketing plans to see what is going wrong with their approach (Classic Airline, 2010).

Current Marketing Strategy

The current marketing plan that Classic Airlines has focused on throughout the years is their frequent flyers program. The program awards flyers who use the airlines on a frequent basis. The current program consists of membership tiers categorized between basic, silver, and gold reward status. The membership caters to both business and leisure travelers. The club consists of 80% business travelers and 20% leisure travelers. At first glance, the program seems complicated and difficult to understand. It seems almost impossible to sit down and figure out how many miles an individual or family has accumulated without getting assistance from the customer service agents at Classic Airlines. The company has dedicated time and money to learn about their typical business and leisure customers. The company has also mapped out how their competition has mastered the market. The research will allow the business to cater their marketing strategy to specific customer needs and expectations.

Marketing Concepts

There is a typical 5-step approach to...